The most promising areas to invest in U.S. multifamily properties

Rating of investments in multi-family homes in the USA
Duration of housing prices in the USA: forecasts and recommendations

Ranking of promising areas for investing in multifamily housing in the U.S.

Forbes magazine has published its ranking of the most promising investment opportunities in multi-family homes in the USA. The publication's analysts conducted a study of this segment based on 150 different regions in the United States.

Decrease in demand for condominiums

In many parts of the country, condominium sales have virtually stalled, and some sellers have been have been trying to find a buyer for their properties for about a year. Condominium prices have fallen sharply because of a overestimation of demand from builders, who during the "boom" in the real estate market in the states put in too many of these types of units. The fivefold increase in the rate of condominium construction from 1996 through 2007 resulted in a severe oversupply.

Challenges of selling luxury apartments

Currently, the greatest difficulties arise in selling luxury apartments priced over $700,000. This segment of the market is particularly interesting to foreign real estate buyers who are looking for attractive offers.

Choice of developers

During the "boom" in the American real estate market, the construction of condominiums was highly profitable. However, an oversupply and a 3% decrease in sales last year put developers in a difficult position: should they sell at significant discounts or hold out for the asking price and not sell at all?

The question of how long current housing prices will last is becoming increasingly relevant. Predictions vary: from five to ten years, but could they last even shorter? It's difficult to predict, however, the question of the need to adjust pricing strategies will inevitably arise. In market segments saturated with condominiums, the scenario often takes similar forms.

Expensive housingIt has its own characteristics as an investment object. The construction of such houses is relatively easy, which contributes to a rapid increase in prices during periods of economic growth and construction booms, but in times of crisis, they can significantly lose value. Historically, the real estate market in the USA has not experienced prolonged and widespread price declines; however, the experience of previous crises shows that premium properties can suffer the greatest losses.

Current situation in the market

The times when condominiums sold out even before construction was completed are in the past. Currently, this market segment remains the only one where annual sales volumes have not recovered, as confirmed by data from the National Association of Realtors in the USA. This applies not only to new constructions. For example, a condominium built by Trump in 1999 in New York currently has 25 units for sale and 12 for rent.

Sale flat in Kepez 90 000,00 $

Turkey,Kepez

1 Bedroom

1 Bathroom

45 м²

Sale townhouse in Brooklyn 1 887 270,00 $

USA,Brooklyn

4 Bedrooms

4 Bathrooms

233 м²

Sale villa in Novi Ligure 997 500,00 $

USA,Novi Ligure

5 Bedrooms

6 Bathrooms

295 м²

Sale flat in Istanbul 600 000,00 $

Turkey,Istanbul

1 Bedroom

1 Bathroom

80 м²

Rent villa in Miami 87 286,00 $

USA,Miami

6 Bedrooms

6 Bathrooms

478 м²

Sale house in Bahcelievler 472 500,00 $

Turkey,Bahcelievler

3 Bedrooms

3 Bathrooms

115 м²

This accounts for about 16% of all available apartments for sale or rent.

Difficulties on Fisher Island

On Fisher Island, Florida, the situation is even more complicated. The average home in the upper price segment here is 5.3 million dollars, and some condominiums are on the market for more than 350 days. According to a major U.S. real estate website, supply in the local market will outweigh demand for at least another 20 months.

Recommendations for investors

Experts from Forbes recommend that foreign investors pay attention to real estate in certain regions of the USA, as many sellers have become more flexible in their pricing policies, hoping to find buyers. Investing in luxury apartments in condominiums can be a profitable and reliable move.

You can rent out housing to Americans and receive a stable income.
After the crisis ends and demand in the market recovers, it will be possible to sell your property profitably.

Ranking of interesting condominium markets

Forbes magazine has compiled a ranking of the ten most interesting condominium markets. This list includes:

New York (Upper West Side area): average duration on the market - 273 days, average price - 1.24 million dollars, number of condominiums - 28.
Lake Forest, IllinoisThe average duration is 283 days, the average cost is 1.27 million dollars, and the number of condominiums is 21.

Thus, the current situation in the real estate markets suggests that potential buyers can take advantage of favorable conditions for investment. The situation can change, and those who decide to invest in real estate now may find themselves in an advantageous position in the future.

Conclusion

As the author of the article, I believe that the current situation in the multifamily housing market in the U.S. presents a unique opportunity for investors. According to analysts from Forbes magazine, many regions of the country are facing an oversupply issue in the luxury condominium segment, leading to significant discounts from sellers. Investing in luxury apartments in these areas could be a reliable and profitable option, especially considering the potential for rental income and subsequent profitable resale after the crisis ends.

This is confirmed by data on the duration of properties on the market and housing prices in various regions of the USA. For example, the Upper West Side market in New York or Lake Forest in Illinois are of interest to foreign investors looking to purchase real estate at discounted prices.

Main findings

Excess supply:Many elite condominiums have been on the market for a long time, creating opportunities for profitable purchases.
Vendor discounts:Sellers are willing to lower prices to attract customers.
Prospects of renting:Luxury apartments can be rented out, which will provide a stable income. stable income.
Resale opportunity:After the crisis ends, it will be possible to profitably resell real estate.

Thus, the purchase of luxury housing in apartment buildings in certain regions of the U.S. can be a profitable and promising investment that will bring a stable profit in the future.